Pages

A few days ago, the
Government of Republic of Indonesia issued at least two regulations that are
expected to have a positive impact on the growth of property industry in the
country, which began to slowing down along with the slowdown of national
economy. First regulation is the reduction in the minimum down payment for
purchase of property, from previously 30% to 20% (from the value of the
property) only. Second regulation, foreign investors and individuals are now
allowed to buy property/real estate assets in Indonesia. The announcement of
these regulations are responded positively by investors in the Indonesia Stock
Exchange, where the property stocks jumped significantly in the last two to three
days.

With a market cap of
Rp5,070 trillion or equal to US$ 381 billion on June 19, 2015 the Indonesia Stock Exchange or IDX is of course not one of the largest
stock exchanges in the world. However, if we're talking about its history, the IDX
has a historical background that was more complex than you might imagine.
Including, believe it or not, the first public company in the world whose
shares are traded on the Stock Exchange, they were not based in London, New
York, or Tokyo, but.. Jakarta!

A few days ago I had a
small incident with my family at home. So my 3-year-old daughter was running around
and fell, so her knee scuffed. The next morning, she refused to shower because afraid
that her ‘wound’ would be hurt when exposed to water. Her mother repeatedly
explained that it was just a little sore so it will not hurt, but she kept shouted
'I said no!' Losing patience, her mom also shouted. As a result, it was an
uproar morning at home just because of a small blister on the knee, and the
papa (it’s me) should intervene. After taking her to a playground and slowly
explaining about her ‘injuries’, she finally willing to shower.

After rose 22.3% in
2014, the Jakarta Composite Index (JCI) seems to having a hard time in this
2015. When this article was written, the stock index fell to 4,887 or down 6.5%
from year to date. Considering about the poor conditions of national economy
(we've discussed about this in this website many times before, try to read our
articles since last March), then this situation is not surprising at all, and has
been anticipated before (or at least we’ve anticipate it, I don’t know about
others). If there is no fundamental change in months to come, then most likely
this condition will continue, and consequently the JCI would grow negatively in
this 2015. The question, what should we do?

In the first quarter of
2015, Trada Maritime posted a net profit (attributable to the shareholders of parent
entity) of US$ 0.4 million. Although the figure has risen significantly over
the same period of the previous year, but it is very small compared to the
value of the company's equity of US$ 86.7 million. However, an interesting
story about this TRAM probably not related to its financial performance, but
rather related to its share price that currently slumped at the level of Rp50’s
per share, or extremely low compared to its peak price (in the last one year)
which was Rp1,900 per share. If you read the company’s financial statements
that, although don’t show good fundamentals but also not that bad (the company
still posted a profit, and the equity was still positive), and its PBV at
current prices is only 0.5 times, then as a bargain hunter, you may ask: Is
there an opportunity here?